Friday, 31 July 2020

Weekly Update 31st July 2020


Below I have summarised all the main tax related updates we have seen this week.
  • New Grants to Boost Recovery of Small Businesses
  • Construction Working Hours
  • Updated Government guidance on reduced rate VAT for Hospitality
  • Advisory fuel rates update
If you have any queries regarding this week’s content, please do not hesitate to contact me.

I hope you have a great weekend!

Best wishes,

Steve

Steven Hillman ACA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk/covid-19-updates 

Thursday, 30 July 2020

New Grants to Boost Recovery of Small Businesses

Thousands of smaller businesses in England are set to benefit from £20 million of new government funding to help them recover from the effects of the coronavirus pandemic, the Minister for Regional Growth and Local Government has announced.

Small and medium sized businesses will have access to grants of between £1,000 - £5,000 to help them access new technology and other equipment as well as professional, legal, financial or other advice to help them get back on track.

The support will be fully funded by the Government with no obligation for businesses to contribute financially and the support will be fully funded by the government from the England European Regional Development Fund and distributed through local enterprise partnerships (LEP) Growth Hubs, embedded in local areas across England.

LEPs are voluntary partnerships between local authorities and businesses, set up in 2011 by the Department for Business, Innovation and Skills to help determine local economic priorities and lead economic growth and job creation within the local area.

Activities supported through the £20 million can include:

- One-to-many events providing guidance to respond to coronavirus,
- Grants (£1,000 - £5,000) to help businesses access specialist professional advice such as HR, accountants, legal, financial, IT and digital, and to purchase minor equipment to adapt or adopt new technology in order to continue to deliver business activity or diversify.

We will provide further details on how to apply for these grants when the application process is confirmed. 

For more information please visit: https://www.gov.uk/government/news/20-million-in-new-grants-to-boost-recovery-of-small-businesses 

Wednesday, 29 July 2020

Advisory fuel rates update

HMRC publish rates that can be used by employers wishing to pay their employees the cost of fuel for business journeys in company cars (or, where the employer initially pays for all fuel, for reimbursement of private mileage by company car drivers to their employers). Hybrid cars are treated as petrol or diesel cars for this purpose.

HMRC's guidance on fuel-only mileage rates for company cars confirms that employers are not obliged to use advisory fuel rates. Where an employer wishes to use them, they only apply where the employer:

- reimburses employees for business travel in their company cars; or
- requires employees to repay the cost of fuel used for private travel in those company cars.

If the employer pays more than the relevant advisory fuels rates and the payments are not an actual reimbursement, the excess is taxed (and subject to employees' and employers' National Insurance Contributions).

Rates applying from 1 June 2020 are as follows:

Engine size

Petrol

Diesel

LPG

1400cc or less

10p

-

6p

1600cc or less

-

8p

-

1401cc to 2000cc

12p

-

8p

1601cc to 2000cc

-

9p

-

Over 2000cc

17p

12p

11p

Electric cars

An Advisory Electricity Rate has been introduced for electric cars. The current rate is 4p per mile, though it should be noted that electricity is not a fuel for car fuel benefit purposes.

Coronavirus measures

For employees using company cars, an employer may agree to refund the fuel costs using the advisory fuel rates, of employees carrying out volunteer work related to coronavirus, for example, delivering medical supplies including PPE. These refunds are a benefit and the employer may settle any tax and National Insurance contributions on the employee's behalf by reporting through a PAYE Settlement Agreement.

The employer may also agree to fund the cost of fuel for volunteer mileage related to coronavirus. HMRC have advised that volunteer mileage should not be taken into account for the purposes of the car fuel benefit charge for company cars.

Any tax and National Insurance contributions due should be reported through a PAYE Settlement Agreement as a coronavirus related benefit based on the appropriate advisory fuel rate for the volunteer mileage.

Tuesday, 28 July 2020

Updated Government guidance on reduced rate VAT for Hospitality

The government has updated its guidance on reduced rate VAT for Hospitality, Holiday Accommodation and Attractions. A new section about Retail Schemes has been added to the guide. Its original announcement was on 8 July 2020 allowing VAT registered businesses to apply a temporary 5% reduced rate of VAT to certain supplies relating to:

hospitality
hotel and holiday accommodation
admissions to certain attractions

The temporary reduced rate will apply to supplies that are made between 15th July 2020 and 12th January 2021.

Retail schemes

Catering businesses using retail schemes may have to alter their accounting systems for the period 15 July 2020 to 12 January 2021.

If you have a bespoke retail scheme agreement, you should review it and if you think an alteration is needed, contact your large business Customer Compliance Manager. If you are not a large business customer you should contact: Kamran.Hussain@hmrc.gov.uk


Monday, 27 July 2020

Construction Working Hours

For all our Construction clients, the Government has published the latest draft guidance which sets out further detail on the proposed new route for applicants seeking to extend construction site working hours introduced in the Business and Planning Bill.

The aim of the new temporary fast track deemed consent route under section 74B of the Town and Country Planning Act 1990 is to enable urgent changes to construction working hours to support safe construction working in line with the government’s latest social distancing guidance on construction and other outdoor work. For many construction sites, implementation of this guidance will require changes to working practices, including staggered starts and finishes, requiring different hours of operation to those which are currently permitted for the site through planning conditions.


Friday, 24 July 2020

Weekly Update 24th July 2020



Below I have summarised all the main tax related updates we have seen this week.

Making Tax Digital (MTD)
Defer Self-Assessment Payment on Account Due to Coronavirus
How Different Circumstances Affect the Self-Employment Income Support Scheme
Thinking of Starting a New Business? Read our New Business Kit
Read our Fact Sheet on Universal Credit

If you have any queries regarding this week’s content, please do not hesitate to contact me.

I hope you have a great weekend!

Best wishes,

Steve

Steven Hillman ACA
Chartered Accountant
Tel: 01934 444100

Making Tax Digital (MTD)

The Government this week published an overview of Making Tax Digital. The big news is that all VAT registered businesses with VAT turnover below £85,000 will be required to follow MTD rules for returns filed on or after April 2022. That might sound a long way off, but we strongly recommend you taking action now so that you are well prepared for the changes. Please talk to us – we can help you go digital now and you will be amazed at the simplicity of Cloud software and how it will improve your business!   

Making Tax Digital for VAT

VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) are now required to follow the Making Tax Digital rules by keeping digital records and using software to submit their VAT returns.

If you are below the VAT threshold you can voluntarily join the Making Tax Digital service now.
VAT-registered businesses with a taxable turnover below £85,000 will be required to follow Making Tax digital rules for their first return starting on or after April 2022.

Making Tax Digital for Income Tax

Self-employed businesses and landlords with business turnover above £10,000 will need to follow the rules for MTD for Income Tax from their next account period starting on or after 6 April 2023.

Some businesses and agents are already keeping digital records and providing updates to HMRC as part of a live pilot to test and develop the Making Tax Digital service for Income Tax. If you are a self-employed business or landlord you can voluntarily use software to keep business records digitally and send Income Tax updates to HMRC instead of filing a Self-Assessment tax return.


If you need any assistance with MTD please drop us a line. 

Thursday, 23 July 2020

Thinking of Starting a New Business? Read our New Business Kit


It is the ambition of many people to run their own business. In the current economic climate, self-employment may become a necessity for those that have been made redundant, whilst others may decide to start-up in business to be more independent and to obtain the full financial reward for their efforts.

If you’re considering starting your own business, we have produced a New Business Kit which highlights many of the practical points that you need to consider before trading begins. 

You can download our New Business Kit for FREE from our website at: https://www.hillmans.co.uk/new-business-kit

We understand that starting your own business can be daunting. If you'd like some friendly business advice with no obligation, please get in touch for a FREE consultation

Wednesday, 22 July 2020

Read our Fact Sheet on Universal Credit


With many individuals falling into Universal Credit and the world of State Benefits (as a result of the COVID-19 Pandemic), we thought it would be useful to write a fact sheet on Universal Credit for our clients. 

You can download our fact sheet here: https://www.hillmans.co.uk/universal-credit

We hope you find the information useful.


Tuesday, 21 July 2020

Defer Self-Assessment Payment on Account Due to Coronavirus

Choose how and when you can delay making your second payment on account for the 2019 to 2020 tax year.

You have the option to defer your second payment on account if you are:

registered in the UK for Self-Assessment and
finding it difficult to make your second payment on account by 31 July 2020 due to the impact of coronavirus

You can still make the payment by 31 July 2020 as normal if you are able to do so.

The June 2020 Self-Assessment statements showed 31 January 2021 as the due date for paying the July 2020 Payment on Account. This is because HMRC updated their IT systems to prevent customers incurring late payment interest on any July 2020 Payment on Account paid between 1st August 2020 and 31 January 2021. The deferment has not been applied for all customers by HMRC and it remains optional.

HMRC will not charge interest or penalties on any amount of the deferred payment on account, provided it’s paid on or before 31 January 2021.


Monday, 20 July 2020

How Different Circumstances Affect The Self-Employment Income Support Scheme

The Government has updated its page on the Self-employment income support scheme. If you are self-employed or member of a partnership find out how your circumstances can affect your eligibility for the scheme.


The scheme is now closed for claims for the first grant.

The scheme has been extended. If you were eligible for the first grant and can confirm to HMRC that your business has been adversely affected on or after 14 July 2020, you will be able to make a claim for a second and final grant from 17 August 2020.

The scheme allows you to claim a second and final taxable grant worth 70% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £6,570 in total.

As with the first grant HMRC will contact you if you’re eligible.

HMRC will work out your eligibility for the second grant in the same way as the first grant.

You can make a claim for the second grant if you’re eligible, even if you did not make a claim for the first grant.


Friday, 17 July 2020

Weekly Update 17th July 2020


Below I have summarised all the main tax related updates we have seen this week.

Coronavirus Job Retention Scheme Update
VAT Flat Rate Scheme
HMRC Invites Hospitality Industry to Register for Eat Out to Help Out
VAT Reduced Rate of 5% on Hospitality

If you have any queries regarding this week’s content, please do not hesitate to contact me.

I hope you have a great weekend!

Kind regards,

Steve

Steven Hillman ACA
Chartered Accountant
Tel: 01934 444100

Thursday, 16 July 2020

Coronavirus Job Retention Scheme Update

CORONAVIRUS JOB RETENTION SCHEME (CJRS) - INDIVIDUALS YOU CAN CLAIM FOR WHO ARE NOT EMPLOYEES

From 1st July “Flexible Furlough” was introduced and the calculations and time recording of full-time, part-time and fully furloughed employees has become more complicated. 

Changes are occurring regularly as the Government and HMRC make clarifications to the scheme. If you have any queries regarding your claim talk to us first.

The latest changes are outlined below:

Steps to take before calculating your claim using the Coronavirus Job Retention Scheme

Wording has been added to make it clear that HMRC will not decline or seek repayment of any grant based solely on the particular choice between fixed or variable approach to calculating usual hours, as long as a reasonable choice is made


HMRC has issued further guidance on the CJRS Individuals you can claim for who are not employees:

You can claim a grant for individuals who are not employees - as long as they’re paid via PAYE. The groups you can claim for include:

office holders (including company directors)
salaried members of Limited Liability Partnerships (LLPs)
agency workers (including those employed by umbrella companies)
limb (b) workers
Contingent workers in the public sector
Contractors with public sector engagements in scope of IR35 off-payroll working rules (IR35)

Individuals who are paid through PAYE but not necessarily employees in employment law, can continue to be furloughed from 1 July as long as you have previously submitted a claim for them for a furlough period of at least 3 weeks between 1 March and 30 June 2020.


Paying employee taxes and pension contributions

There is also an update on ‘Paying employee taxes and pension contributions’ section and added wording to section on employee rights to make it clear that you can continue to claim for a furloughed employee who is serving a statutory notice period.


The process HMRC is developing to recover overclaimed grant amounts through the tax system

Information has been added about the process HMRC is developing to recover overclaimed grant amounts through the tax system.

If you have made an error in a claim and do not plan to submit further claims, you should contact HMRC to let them know about the error and find out how to pay back any overclaimed amounts. Once you have contacted HMRC you will be given a payment reference number and directed to make a payment.

The Government are introducing legislation to recover overclaimed grant amounts through the tax system. If you repay any overclaimed grant amounts back through the above methods then this will reduce or, if the full amount is repaid, prevent any potential tax liability under that legislation. Further guidance on this will be issued in due course.

If you have made an error that has resulted in an underclaimed amount, you should contact HMRC to amend your claim. As you are increasing the amount of your claim, they need to conduct additional checks.


Please talk to us about CJRS claims – we have an information collection spreadsheet to help you and we can estimate your claim ahead of making it.

Wednesday, 15 July 2020

VAT Flat Rate Scheme

New VAT flat rate percentages from 15th July 2020 until 12th January 2021 have been announced, which include: 

Catering 4.5%
Pubs 1%
Hotels and accommodation 0%


Tuesday, 14 July 2020

HMRC Invites Hospitality Industry to Register for Eat Out to Help Out

Registrations for the Eat Out to Help Out Scheme started yesterday (13th July 2020).

Restaurants and other establishments serving food for on-premises consumption can now sign up to a new government initiative aimed at protecting jobs in the hospitality industry and encouraging people to safely return to dining out.

The Eat Out to Help Out registration service is now live on GOV.UK, allowing businesses to join the scheme announced last week by Rishi Sunak MP, Chancellor of the Exchequer.

Restaurants, bars, cafes and other establishments who use the scheme will offer a 50% reduction, up to a maximum of £10 per person, to all diners who eat and/or drink-in throughout August.

Customers do not need a voucher as participating establishments will just remove the discount from their bill. Businesses simply reclaim the discounted amount through an online service, supported by HM Revenue and Customs (HMRC). Claims can be made on a weekly basis and will be paid into bank accounts within five working days.

The scheme is open to eligible establishments across the UK and can be used all day, every Monday to Wednesday, between 3 and 31 August 2020.


The Government has provided marketing resources for the Eat Out to Help Out scheme. There are posters, images and other promotional materials for use by establishments who are taking part in the Scheme.


Monday, 13 July 2020

VAT Reduced Rate of 5%


One of the new Government initiatives last week was the announcement of the reduction in VAT to 5% on hospitality, hotel and holiday accommodation and admissions to certain attractions.

The reduced VAT scheme starts on the 15th July so please talk to us if you have any concerns. 

VAT – REDUCED RATE OF 5% 

The government made an announcement on the 8th July 2020 allowing VAT registered businesses to apply a temporary 5% reduced rate of VAT to certain supplies relating to:

hospitality
hotel and holiday accommodation
admissions to certain attractions

The temporary reduced rate will apply to supplies that are made between 15 July 2020 and 12 January 2021.

Reduced rate for hospitality, holiday accommodation and attractions

Hospitality

If you supply food and non-alcoholic beverages for consumption on your premises, for example, a restaurant, cafΓ© or pub, you’re currently required to charge VAT at the standard rate of 20%. However, when you make these supplies between 15 July 2020 and 12 January 2021 you will only need to charge 5%.

You will also be able to charge the reduced rate of VAT on your supplies of hot takeaway food and hot takeaway non-alcoholic drinks.

More information about how these changes apply to your business can be found in Catering, takeaway food (VAT Notice 709/1). See: https://www.gov.uk/guidance/catering-takeaway-food-and-vat-notice-7091

Hotel and holiday accommodation

You will also benefit from the temporary reduced rate if you:

supply sleeping accommodation in a hotel or similar establishment
make certain supplies of holiday accommodation
charge fees for caravan pitches and associated facilities
charge fees for tent pitches or camping facilities

More information about how these changes apply to your business can be found in Hotels and holiday accommodation (VAT Notice 709/3). See: https://www.gov.uk/guidance/hotels-holiday-accommodation-and-vat-notice-7093

VAT on admission charges to attractions

If you charge a fee for admission to certain attractions where the supplies are currently standard rated, you will only need to charge the reduced rate of VAT between 15 July 2020 and 12 January 2021.

However, if the fee you charge for admission is currently exempt that will take precedence and your supplies will not qualify for the reduced rate.

This applies to:

shows
theatres
circuses
fairs
amusement parks
concerts
museums
zoos
cinemas
exhibitions
similar cultural events and facilities

Examples of where the reduced rate may apply could be attractions such as:

a planetarium
botanical gardens
studio tours
factory tours

More information about how these changes apply can be found in VAT: Admission charges to attractions. 


Friday, 10 July 2020

Weekly Update 10th July 2020


Below I have summarised all the main tax related updates we have seen this week.

Green Homes Grant Scheme
Summer Economic Update - Chancellor announces new support measures
Countryside Stewardship Mid-Tier Applications – Exception Requests
Avoid Pension Scams

If you have any queries regarding this weeks content please do not hesitate to contact me.

I hope you have a great weekend!

Best wishes,

Steve

Steven Hillman ACA
Chartered Accountant
Tel: 01934 444100

Green Homes Grant Scheme

The government is introducing a new Green Homes Grant which will provide at least £2 for every £1 homeowners and landlords spend to make their homes more energy efficient, up to £5,000 per household. 

For those on the lowest incomes, the scheme will fully fund energy efficiency measures of up to £10,000 per household. 

The grant is expected to launch in September 2020, and will cover a range of energy saving measures, including roof insulation, wall insulation and double glazing. 

This is another measure expected to generate 100,000 additional jobs and will also be vital for meeting the target of net zero greenhouse gas emissions by 2050. The scheme aims to upgrade over 600,000 homes across England, saving households hundreds of pounds per year on their energy bills.

Thursday, 9 July 2020

Summer Economic Update

On Wednesday 8th July 2020, the Chancellor Rishi Sunak made a speech entitled “Summer Economic Update” where he unveiled further Government supports and he unveiled the Government’s plan for jobs which he described as the “Second phase in in the Government’s economic response to the crisis.”

Here are the highlights and we will update you on the details in the next few days as the Government publishes the specifics of the supports.

The “Plan for Jobs” PDF can be seen: 

CORONAVIRUS JOB RETENTION SCHEME (CJRS) AND JOB RETENTION BONUS 

The CJRS ends in October and the Chancellor looked to cushion expected redundancies with the announcement of a Job Retention Bonus (JRB). The new scheme will give employers £1,000 for each previously furloughed employee they retain and keep in employment until January 2021, as long as they are paid at least £520 a month. Further details of the scheme are expected later in July.

KICKSTART SCHEME AND MEASURES TO HELP PEOPLE FIND WORK

In order to support people finding jobs, the Chancellor announced the Kickstart Scheme, which will provide £2 billion to support the creation of “high quality” six-month work placements for 16 to 24-year-olds on Universal Credit and at risk of long-term unemployment.

The Government will provide employers that offer the placements funding equivalent to 100 per cent of the relevant level of the National Minimum Wage (NMW) for 25 hours a week. It will also cover the associated Employer NICs and minimum automatic enrolment pension contributions.
Rishi Sunak also outlined additional measures, including funding for traineeships and employers that hire new apprentices, as well as funding for several careers and job-finding programmes.

The apprenticeships funding will provide £2,000 to employers in England for every apprentice hired under the age of 25 and £1,500 for each newly hired apprentice aged 25 or older. This funding is in addition to schemes already in place to support employers in taking on apprentices.

VALUE ADDED TAX REDUCED RATE FOR HOSPITALITY AND TOURISM SECTORS

The Chancellor outlined a VAT rate cut for the Hospitality and Tourism sectors from 20 per cent to five per cent. The measures relate specifically to food and non-alcoholic drinks and to accommodation and admission to attractions, with further details expected to be published later.

The VAT rate change comes into effect on Wednesday 15 July 2020 and will be in place temporarily until 12 January 2021.

EAT OUT TO HELP OUT 

The “Eat Out to Help Out” scheme will provide a discount of 50 per cent of up to £10 a person on eat-in meals, including non-alcoholic drinks, at participating establishments on Mondays, Tuesdays and Wednesdays for the month of August. 

Restaurants, cafes and pubs can sign-up for the scheme on a new website on Monday 13 July 2020.

STAMP DUTY LAND TAX HOLIDAY AND JOB CREATION MEASURES

There is a temporary cut in Stamp Duty Land Tax (SDLT) from 8 July by raising the nil-rate band from £125,000 to £500,000 until 31 March 2021. The Treasury estimates that, as a consequence, around nine in 10 people buying a main residence will pay no SDLT.

Further details can be found on SDLT changes here: https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates

RESIDENTIAL RATES ON PURCHASES FROM 8 JULY 2020 TO 31 MARCH 2021

If you purchase a residential property between 8 July 2020 to 31 March 2021, you only start to pay SDLT on the amount that you pay for the property above £500,000. These rates apply whether you are buying your first home or have owned property before.

You can use the table to work out the SDLT due:

Property or lease premium or transfer value         SDLT rate
Up to £500,000                         Zero
The next £425,000 (the portion from £500,001 to £925,000)         5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million)         12%

From 8 July 2020 to 31 March 2021 the special rules for first time buyers are replaced by the reduced rates for additional properties

Higher rates for additional properties

The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021.

The following rates apply:

Property or lease premium or transfer value         SDLT rate
Up to £500,000                         3%
The next £425,000 (the portion from £500,001 to £925,000)     8%
The next £575,000 (the portion from £925,001 to £1.5 million) 13%
The remaining amount (the portion above £1.5 million)         15%

New leasehold sales and transfers

The nil rate band which applies to the ‘net present value’ of any rents payable for residential property is also increased to £500,000 from 8 July 2020 until 31 March 2021.

The following rates will apply:

Net Present Value of any Rent                                                 SDLT rate
Up to £500,000                                                         Zero
Over £500,000                                                         1%

Companies as well as individuals buying residential property worth less than £500,000 will also benefit from these changes, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15% SDLT charge.

On the 1 April 2021, the reduced rates shown in the above tables will revert to the rates of SDLT that were in place prior to 8 July 2020.

As outlined above we will keep you up to date with these and other measures as the Government releases further details. Please talk to us if you need any help during this time. 

Wednesday, 8 July 2020

Chancellor announces new support measures

The Chancellor has just announced the following support measures:

- VAT reduced to 5% in hospitality sector from Wednesday until Jan-21
- Stamp duty threshold increased to £500k
- £1000, Job Retention Scheme grant for re-employing Furlough workers until Jan-21
- First 6 months apprenticeship sponsored by government to bring young people back in work

I will be reading the full details when published and be updating our clients with a full overview ASAP.

In the interim if you have any queries or concerns please don't hesitate to drop me a line.

Best,

Steve

Steven Hillman ACA
Chartered Accountant
Tel: 01934 444100


Tuesday, 7 July 2020

Countryside Stewardship Mid-Tier Applications – Exception Requests

The deadline to receive CS Mid-Tier applications is midnight on 31st July 2020. If you have not yet submitted your form, annexes, and any supporting documents, you need to submit these by the deadline if you are able to do so.

Email is the often the safest and quickest way to submit your application.

If you believe you will not be able to meet the 31st July deadline due to coronavirus (COVID-19), you must email RPA by 31st July to advise of this. Email:  ruralpayments@defra.gov.uk, and use ‘CS 2020 Mid-Tier application exception’ as the subject title. If you are unable to email, you can call the helpline on 03000 200 301.

Once you have received an automatic receipt to your email, you must submit your application, annexes and supporting documents as soon as possible. RPA will not accept any applications, including annexes and supporting documents, after midnight on 31st August.

For Wildlife Offers, there is no exception and your application must be received before midnight on 31st July.


Monday, 6 July 2020

Avoid Pension Scams


In these tough times savers might increasingly look to transfer their pension, prompted by the instability of their employer or the financial markets. 

Savers could be increasingly targeted by scammers attempting to lure them to 'safe havens'. 

Fraudsters promise high returns and low risk, but in reality, pension savers that are scammed can be left with nothing.

When savers realise they have been scammed, it can be devastating – many lose their life savings. Once the money is gone, it is almost impossible to get it back.

How pension scams work

Anyone can be the victim of a pension scam, no matter how savvy they think they are. It is important that everyone can spot the warning signs.

Scammers try to persuade pension savers to transfer their entire pension savings, or to release funds from it, by making attractive sounding promises they have no intention of keeping.

The pension money is often invested in unusual, high risk investments like:

overseas property and hotels
renewable energy bonds
forestry
parking
storage units

Or it can be simply stolen outright.

Friday, 3 July 2020

Weekly Update 3rd July 2020


Below I have summarised all the main tax related updates we have seen this week.

Discretionary Business Grant Scheme Round 2 North Somerset Council Open
More Firms Can Now Benefit From The Future Fund
How to apply for breathing space to consider a rescue plan for your company
Summary of UK Business Rules Relaxed During the Coronavirus Pandemic
Contacted by Coronavirus Test and Trace - Eligibility for Statutory Sick Pay (SSP)

Best wishes to all our clients who are re-opening their businesses this weekend! 
πŸ’ˆπŸ’‡πŸΊπŸ•️πŸ’š

Kind regards,

Steve

Steven Hillman ACA
Chartered Accountant
Tel: 01934 444100

Thursday, 2 July 2020

Discretionary Business Grant Scheme Round 2 North Somerset Council Open


North Somerset Council have reopened the application process for its next wave of discretionary business grants worth up to £5,000 from the 29th June 2020.

This grant scheme is designed to provide additional support to businesses that are outside the scope of the mandatory business grant funds scheme. Businesses are only entitled to this grant where they have not received the original business support grant or other grants awarded in support of dealing with COVID-19.

The maximum grant is £5,000, and eligible small businesses include those in shared offices, regular market or street traders, bed and breakfasts (excluding Airbnb) and charity properties receiving charitable business rates.

Applications are open from the 29th June for two weeks (which closes on the 13th July). North Somerset Council anticipate paying eligible grants on the 27th July 2020.  The revised scheme will now consider new applications from a wider range of business than the previous scheme. NSC have expanded the criteria to include those that operate in the following sectors:

-Education and Child Care
-Tourism
-Retail
-Leisure and Entertainment
-Wholesalers, including business to business activities

Businesses eligible under the previous round of the discretionary scheme remain eligible. 

Businesses can apply here: https://forms.n-somerset.gov.uk/ad/form/cvdsbgrant  from 29th June 2020 until the 13th July 2020.  

How to apply for breathing space to consider a rescue plan for your company


How to apply for breathing space to consider a rescue plan for your company, under measures to support companies and other types of business in financial difficulty.

If your business has or is really struggling, you can get “formal” breathing space to consider a rescue plan for your company.

A moratorium gives struggling businesses formal breathing space in which to explore rescue and restructuring options, free from creditor action.

Except in certain circumstances, no insolvency proceedings can be instigated against the company during the moratorium period. It also prevents legal action being taken against a company without permission from the court - with the exception of employment tribunal proceedings, or proceedings between an employer and a worker, which do not require permission of the court to commence or continue.

Directors remain in control of the company and will still need to meet their filing obligations with Companies House. Late filing penalties will still be applied where accounts are filed late.

Wednesday, 1 July 2020

More Firms Can Now Benefit From The Future Fund


More start-ups and innovative firms will be able to apply for investment from the government’s Future Fund from 30 June:

companies which have participated in accelerator programmes now eligible for the popular scheme
more than 320 early-stage, high-growth firms have so far benefitted from £320 million of support through the Fund
this surpasses the £250 million initial funding made available by the government

Changes to the scheme’s eligibility criteria will mean that UK companies who have participated in highly selective accelerator programmes and were required, as part of that programme, to have parent companies outside of the UK will now be able to apply for investment.

To date, more than 320 companies have benefitted from £320 million of Future Fund support. Under the scheme, early-stage, high-growth businesses from a diverse range of sectors can apply for a convertible loan of between £125,000 and £5 million to help them through the Coronavirus outbreak.